EASTERN SHENGHONG(SZ:000301) Changjiang Securities·2024-11-15 01:47Investment Rating - The investment rating for the company is "Buy" and is maintained [3]. Core Views - The company announced a plan for its controlling shareholder and its concerted parties to increase their holdings in the company's shares using self-owned funds and special loans, with a total investment amount not less than RMB 2 billion and not exceeding RMB 4 billion within six months from the announcement date. This move is aimed at boosting investor confidence and maintaining the interests of minority shareholders [4][6]. - Financial institutions are providing support for stock repurchase and increase through special loans, with commitments from various banks totaling up to RMB 28 billion for the controlling shareholder's share purchases [5]. - The company is positioned as a leading integrated refining and chemical company in China, with projected net profits for 2024-2026 being -1.16 billion, 1.08 billion, and 1.68 billion RMB respectively, maintaining a "Buy" rating based on these forecasts [6]. Summary by Sections Company Overview - The controlling shareholder, Shenghong Technology, and its concerted parties are committed to increasing their stakes in the company, reflecting confidence in its long-term investment value [4][5]. Financial Projections - The company expects to achieve net profits of -1.16 billion RMB in 2024, 1.08 billion RMB in 2025, and 1.68 billion RMB in 2026, with corresponding PE ratios of 54.0X and 34.8X for 2025 and 2026 based on the closing price as of November 13, 2024 [6][10]. Market Performance - The current stock price is 8.85 RMB, with a total share capital of 661.12 million shares and a net asset value per share of 4.90 RMB [7]. The stock has experienced a decline of 33% over the past 12 months compared to the chemical sector and the CSI 300 index [8].